GREEN CREDIT PROGRAMME - ENVIRONMENT

News: Centre tweaks green credit programme norms

 

What's in the news?

       Amid concerns that the Green Credit Programme (GCP), which encourages organisations and individuals to invest in afforestation project in ‘degraded’ forest lands for ‘green credits,’ may encourage tree planting for financial gains, the Union Environment Ministry — the overall coordinator of the programme — has clarified that primacy must be accorded to restoring ecosystems over merely tree planting.

 

Green Credit:

       A green credit is a unit of incentive awarded for carrying out actions that have a positive environmental impact.

 

Working:

       It works like a reward point for activities such as tree planting, water conservation, sustainable agriculture, or pollution reduction.

       Green credits can be traded on a market platform, allowing individuals and organisations to monetise their environmentally-friendly actions and providing incentives for others to adopt similar practices.

 

New Rules Regards Tree Planting related Green Credit:

       According to the notification, tree plantation for green credits can now only occur on degraded land parcels under state or Union Territory control (Degraded land parcels identified by respective states), encompassing open forests, scrub lands, wastelands, and catchment areas.

       The minimum land size for such projects is set at 5 hectares.

       Anyone who wants to get green credits will have to apply to the MoEFCC administrator.

       The administrator then will identify suitable land and prepare a demand note for the applicant, outlining the costs associated with plantation and administration.

       The person or entity who wants green credit can simply pay the required costs associated with plantation and administration.

       The forest department can then undertake the plantation based on a predetermined management plan.

       It can ensure completion within two years.

       Once the plantation is complete, the department issues a certificate to the applicant.

       The MoEFCC then evaluates and verifies the activity before awarding green credits.

       The number of green credits awarded is directly linked to the number of successfully grown trees, with a minimum density of 1,100 trees per hectare required for certification by the department.

       Each successfully grown tree earns the applicant one green credit.

 

Linked to Other Obligation:

       Green credits can be used to fulfil compensatory afforestation requirements for non-forestry land use or contribute to environmental, social, and governance (ESG) and corporate social responsibility (CSR) initiatives.

       The credits can also be exchanged for meeting compensatory afforestation targets.

 

Concerns Associated with the Rules:

       This rule is unscientific and completely ignores the ecological aspects of forests. Referring to open forests, scrubland, and catchment areas as 'degraded' land parcels are vague.

       Incentivising industrial-scale plantations in such areas will irreversibly alter soil quality, replace local biodiversity, and may be disastrous for local ecosystem services.

       Degraded land is a piece of land that has lost its ability to support healthy plant growth and ecosystems. This can happen due to cutting down too many trees, overgrazing by animals, harmful farming practices, or extreme weather events.

 

Further Reference - Green Credit Scheme